This publication presents final results, in respect of the 2000-01 financial year, from an Australian Bureau of Statistics (ABS) survey on the production and distribution of information technology and telecommunications (IT&T) goods and services by businesses in Australia. The publication predominantly presents statistics for IT&T specialist businesses. IT&T specialist businesses are defined as businesses which derive 50% or more of their total income from IT&T goods and services. The exception to this rule is employing businesses who fall into certain classes of the Australian and New Zealand Standard Industrial Classification (ANZSIC). Businesses who fall into these classes are regarded as IT&T specialists regardless of their income. Further information on these classes are available in the glossary. Table 1.1 contains summary information from the survey.

Note that financial data are presented in current price terms.

Businesses

At the end of June 2001, there were 22,475IT&T specialist businesses in the industries surveyed. Of these IT&T specialist businesses, 17,386 (77%) were in the computer consultancy services industry, 2,320 (10%) in the computer wholesaling industry and 814 (4%) in the telecommunication services industry. The remaining 1,955 (9%) were spread across the other industries surveyed.

Employment

There were 238,521 persons working in IT&T specialist businesses at the end of June 2001.

Profitability

During 2000-01, IT&T specialist businesses generated a total operating profit before tax of $4,925m, a 35% decrease ($2,595m) from the level recorded for 1998-99. The main contributors to this decline in profitability were the following IT&T industry groupings: wholesale trade (decrease of $1,349m), computer services (decrease of $641m) and telecommunication services (decrease of $612m).

Overall, the operating profit margin in 2000-01 was 6.5%, which was a decrease on the operating profit margin of 12.2% recorded in 1998-99. Operating profit margins declined for each of the IT&T industry groupings, with computer services showing the greatest fall (from 8.1% in 1998-99 to 1.4% in 2000-01), followed by wholesale trade (from 4.5% to -1.4%) and telecommunication services (from 21.2% to 16.2%).

PROFITABILITY MEASURES, IT&T Specialists

IT&T industry sector

Operating profit before tax

Operating profit margin

1998-99

2000-01

1998-99

2000-01

$m

$m

%

%

Manufacturing

r148.1

154.8

4.4

3.8

Wholesale trade

r961.0

-388.2

4.5

-1.4

Telecommunication services

r5,565.5

4,953.9

21.2

16.2

Computer services

r845.4

**204.3

8.1

1.4

Total

r7,520.0

4,924.9

12.2

6.5

r revised** estimate has a relative standard error greater than 50% and is considered too unreliable for general useCopyright ã Australian Bureau of Statistics, 2002

Income

During 2000-01, the total income for IT&T specialist businesses was $77,518m, an increase of $14,920m (or 24%) since 1998-99.

INCOME, IT&T industries, 2000-01

Business type

IT&T income

Other income

Total income

$m

$m

$m

IT&T specialists

73,767.1

3,751.1

77,518.2

Other businesses

744.5

11,529.6

12,274.0

All businesses

74,511.6

15,280.7

89,792.3

Copyright ã Australian Bureau of Statistics, 2002

IT&T specialist businesses had IT&T income of $73,767m which represented 95% of their total income. The largest contributors to IT&T income were businesses classified to the telecommunication services industry ($29,827m), which accounted for 40% of the total. The computer wholesaling industry contributed $20,271m (27%) and the computer consultancy services industry contributed $12,412m (17%).

Industry value added

During 2000-01, the total industry value added for IT&T specialists was $28,211m. The industries making the greatest contribution to industry value added were telecommunication services ($15,478m), which accounted for 55% of the total. Computer consultancy services contributed $6,762m (24%) and computer wholesaling contributed $3,058m (11%).

TABLE 1.1 SUMMARY OF OPERATIONS

Businesses at end June

Employment at end June

IT&T income

Total income

Wages and salaries

Industry value added

no.

no.

$m

$m

$m

$m

IT&T SPECIALISTS

Manufacturing

Computer and business machines

282

3,398

1,311.3

1,342.7

137.6

227.9

Telecommunication, broadcasting and transceiving equipment

188

8,373

1,914.0

2,340.5

555.8

815.3

Electronic equipment n.e.c.

-

-

-

-

-

-

Electric cable and wire

*28

928

430.2

469.7

55.6

139.9

Total

497

12,699

3,655.4

4,152.9

749.0

1,183.0

Wholesale trade

Computers

2,320

38,656

20,271.2

20,618.3

2,148.2

3,057.6

Business machines and electrical and electronic equipment n.e.c.

483

12,327

6,072.5

6,704.4

902.2

1,056.3

Total

2,803

50,983

26,343.7

27,322.7

3,050.4

4,113.9

Telecommunication services

814

77,275

29,827.1

31,504.8

4,651.3

15,478.4

Computer services

Data processing

485

3,718

*443.2

*477.3

154.3

*263.1

Information storage and retrieval

33

1,174

141.7

150.0

49.0

73.6

Computer maintenance

457

4,451

944.4

983.2

252.6

337.9

Computer consultancy

17,386

88,222

12,411.6

12,927.3

5,154.6

6,761.5

Total

18,361

97,565

13,940.9

14,537.8

5,610.5

7,436.0

Total

22,475

238,521

73,767.1

77,518.2

14,061.1

28,211.3

OTHER BUSINESSES

Manufacturing

Computer and business machines

16

808

np

212.4

45.4

262.1

Telecommunication, broadcasting and transceiving equipment

-

-

-

-

-

-

Electronic equipment n.e.c.

301

8,027

31.1

1,948.4

361.1

558.1

Electric cable and wire

33

2,461

np

939.2

134.9

241.8

Total

351

11,296

109.5

3,099.9

541.4

1,062.0

Wholesale trade

Computers

-

-

-

-

-

-

Business machines and electrical and electronic equipment n.e.c.

1,914

26,744

634.9

9,174.2

1,088.7

1,660.4

Total

1,914

26,744

634.9

9,174.2

1,088.7

1,660.4

Telecommunication services

-

-

-

-

-

-

Computer services

-

-

-

-

-

-

Total

2,264

38,040

744.5

12,274.0

1,630.1

2,722.3

ALL BUSINESSES

Manufacturing

Computer and business machines

298

4,206

np

1,555.1

183.0

489.9

Telecommunication, broadcasting and transceiving equipment

188

8,373

1,914.0

2,340.5

555.8

815.3

Electronic equipment n.e.c.

301

8,027

31.1

1,948.4

361.1

558.1

Electric cable and wire

61

3,389

np

1,408.9

190.5

381.7

Total

848

23,995

3,765.0

7,252.8

1,290.3

2,245.0

Wholesale trade

Computers

2,320

38,656

20,271.2

20,618.3

2,148.2

3,057.6

Business machines and electrical and electronic equipment n.e.c.

2,396

39,070

6,707.4

15,878.6

1,990.9

2,716.6

Total

4,716

77,726

26,978.6

36,496.9

4,139.1

5,774.2

Telecommunication services

814

77,275

29,827.1

31,504.8

4,651.3

15,478.4

Computer services

Data processing

485

3,718

*443.2

*477.3

154.3

*263.1

Information storage and retrieval

33

1,174

141.7

150.0

49.0

73.6

Computer maintenance

457

4,451

944.4

983.2

252.6

337.9

Computer consultancy

17,386

88,222

12,411.6

12,927.3

5,154.6

6,761.5

Total

18,361

97,565

13,940.9

14,537.8

5,610.5

7,436.0

Total

24,739

276,561

74,511.6

89,792.3

15,691.2

30,933.7

- nil or rounded to zero (including null cells)* estimate has a relative standard error of between 25% and 50% and should be used with cautionnp not available for publication but included in totals where applicable, unless otherwise indicatedCopyright ã Australian Bureau of Statistics, 2002